It seems like only yesterday we published an article about two new companies that had been published in the government’s list of named tax avoidance schemes, promoters, enablers and suppliers. Now, updated on the 11th of May 2023, five new companies have been added to the list: Collect Consulting Limited, Connections Limited, First Step Consulting Limited, Simply Consulting Ltd and Total Recruitment Services Ltd. Interestingly, all five are based in the Isle of Man. Please keep reading for more information about these companies, how they operate, why they’re deemed non-compliant, and the dangers of engaging with a tax avoidance scheme (or non-compliant umbrella company).
Collect Consulting Limited
- Promoter of Scheme: Collect Consulting Limited (Incorporated in Isle of Man) (‘Collect (IOM)’) / Select Umbrella Ltd (‘Select (UK)’)
- Address: Collect Consulting Limited, C/O CKM Consultants Ltd, 1st Floor, Queen Victoria House, 41-43 Victoria Street, Douglas, Isle of Man, IM1 2LF / Select Umbrella Ltd, C/O CG & CO, Greg’s Building, 1 Booth Street, Manchester, M2 4DU
- Publication Date: 11 May 2023
- Scheme Reference Number (SRN) and date it was allocated: 82494827, 27 October 2022
- HMRC’s Scheme Description (summary): “Scheme users sign a contract of employment and loan agreement with Collect (IOM). Collect (IOM) then enters into a contract with Select (UK), a UK umbrella company, for the provision of the scheme user’s services. Select (UK) then contracts the scheme user’s services to a UK intermediary/agency. The UK intermediary/agency then contracts the scheme user’s services to the end client. The end client pays the UK intermediary/agency for the scheme user’s services, who in turn pay Select (UK). Following the deduction of a fee, Select (UK) pay the remaining amount to Collect (IOM). Collect (IOM) pays a National Minimum Wage salary to the scheme user and a payment, described as a loan, pursuant to the loan agreement, which is made without deductions of Income Tax or National Insurance contributions.”
- For more information, please click here.
Connections Limited
- Promoter of Scheme: Connections Limited (Incorporated in the Isle of Man) (‘Connections (IOM)’) / Bilberry Resourcing Ltd (‘Bilberry (UK)’) / 1st Choice Umbrella Ltd (‘1st Choice (UK)’)
- Address: Connections Limited, Unit 15E Tromode Estate, Carrs Lane, Douglas, Isle of Man, IM4 4RG / Bilberry Resourcing Ltd, Kingsgate, 62 High Street, Redhill, Surrey, RH1 1SG / 1st Choice Umbrella Ltd, Tamworth Enterprise Centre, Corporation Street, Tamworth, B79 7DN
- Publication Date: 11 May 2023
- Scheme Reference Number (SRN) and date it was allocated: 23645891, 14 June 2022
- HMRC’s Scheme Description (summary): “Connections (IOM) signs a Contract of Employment and Loan Agreement with the scheme users. Connections (IOM) enters into a contract with a UK Umbrella Company (either 1st Choice (UK) or Bilberry (UK)) for the provision of the scheme user’s services. The UK Umbrella Company then contracts the scheme user’s services to a UK intermediary/agency. The UK intermediary/agency then contracts the scheme users’ services to the end client. The end client pays the UK intermediary/agency for the scheme user’s services, who in turn pay the UK Umbrella Company. Following the deduction of a fee, the UK Umbrella Company pay the remaining amount to Connections (IOM). Connections (IOM) pays a salary to the scheme user at the applicable rate of the national minimum wage (or national living wage) and makes a separate payment described as a loan, which is made without deductions of income tax or National Insurance contributions.”
- For more information, please click here.
First Step Consulting Limited
- Promoter of Scheme: First Step Consulting Limited (Incorporated in Isle of Man) (‘First Step (IOM)’) / Simply Umbrella Services Limited (‘Simply (UK)’)
- Address: First Step Consulting Limited, C/O CKM Consultants Ltd, 1st Floor Queen Victoria House, 41-43 Victoria Street, Douglas, Isle of Man, IM1 2LF / Simply Umbrella Services Limited, C/O Begbies Traynor (Central) LLP, Suite 9 River Court, 5 West Victoria Dock Road, Dundee, DD1 3JT
- Publication Date: 11 May 2023
- Scheme Reference Number (SRN) and date it was allocated: 90926253, 27 October 2022
- HMRC’s Scheme Description (summary): “Scheme users sign a contract of employment and loan agreement with First Step (IOM). First Step (IOM) then enters into a contract with Simply (UK), a UK umbrella company for the provision of the scheme user’s services. Simply (UK) then contracts the scheme user’s services to a UK intermediary/agency. The UK intermediary/agency then contracts the scheme user’s services to the end client. The end client pays the UK intermediary/agency for the scheme user’s services, who in turn pay Simply (UK). Following the deduction of a fee, Simply (UK) pay the remaining amount to First Step (IOM). First Step (IOM) pays a National Minimum Wage salary to the scheme user and a payment, described as a loan, pursuant to the loan agreement, which is made without deductions of Income Tax or National Insurance contributions.”
- For more information, please click here.
Simply Consulting Ltd
- Promoter of Scheme: Simply Consulting Ltd (Incorporated in the Isle of Man) (‘Simply (IOM)’) / Simply Umbrella Services Limited (‘Simply (UK)’)
- Address: Simply Consulting Ltd, C/O CKM Consultants Ltd, 1ST Floor Queen Victoria House, 41-43 Victoria Street, Douglas, Isle of Man, IM1 2LF / Simply Umbrella Services Limited, C/O Begbies Traynor (Central) LLP, Suite 9 River Court, 5 West Victoria Dock Road, Dundee, DD1 3JT
- Publication Date: 11 May 2023
- Scheme Reference Number (SRN) and date it was allocated: 30015085, 27 October 2022
- HMRC’s Scheme Description (summary): “Scheme users sign a contract of employment and loan agreement with Simply (IOM). Simply (IOM) then enters into a contract with Simply (UK), a UK umbrella company, for the provision of the scheme user’s services. Simply (UK) then contracts the scheme user’s services to a UK intermediary/agency. The UK intermediary/agency then contracts the scheme user’s services to the end client. The end client pays the UK intermediary/agency for the scheme user’s services, who in turn pay Simply (UK). Following the deduction of a fee, Simply (UK) pay the remaining amount to Simply (IOM). Simply (IOM) pays a National Minimum Wage salary to the scheme user and a payment, described as a loan, pursuant to the loan agreement, which is made without deductions of Income Tax or National Insurance contributions.”
- For more information, please click here.
Total Recruitment Services Ltd
- Promoter of Scheme: Total Recruitment Services Ltd (TRS) (Incorporated in Isle of Man) / Contractor Central Accounting Limited (CCAL)
- Address: Total Recruitment Services Ltd, C/o CKM Consultants Ltd, 1st Floor, Queen Victoria House, 41 – 43 Victoria Street, Douglas, Isle of Man, IM1 2LF / Contractor Central Accounting Ltd, The Axis Building Maingate, Team Valley Trading Estate, Gateshead, England, NE11 0NQ
- Publication Date: 11 May 2023
- Scheme Reference Number (SRN) and date it was allocated: 94398486, 10 November 2022
- HMRC’s Scheme Description (summary): “Scheme users sign a contract of employment and loan agreement with Total Recruitment Services Ltd (TRS). TRS then enters into a contract with Contractor Central Accounting Limited (CCAL), a UK umbrella company, for the provision of the scheme user’s services. CCAL then contracts the scheme user’s services to a UK intermediary/agency. The UK intermediary/agency then contracts the scheme user’s services to the end client. The end client pays the UK intermediary/agency for the scheme user’s services, who in turn pay CCAL. Following the deduction of a fee, CCAL pay the remaining amount to TRS. TRS pays a National Minimum Wage salary to the scheme user and a payment, described as a loan and made pursuant to the loan agreement, which is made without deductions of Income Tax or National Insurance contributions.”
- For more information, please click here.
What are the risks of engaging with a tax avoidance scheme?
By using a tax avoidance scheme, you will not be paying your fair share of tax and National Insurance Contributions. As the government’s corporate report (Current list of named tax avoidance schemes, promoters, enablers and suppliers) suggests, HMRC is busy naming and shaming unethical payroll companies, and they are actively going after those who have engaged with them. With this in mind, the biggest risk faced by those who use tax avoidance schemes (either deliberately or by error) is an HMRC investigation in the future that could result in a life-changing tax bill. If you engage with a non-compliant scheme, you could also risk losing your funds, as the people behind these companies may shut up shop and disappear before you know it. You could also be funding crime and other unethical projects.
Top 10 umbrella companies
To help make your search for a trustworthy umbrella company easier (not one based in the Isle of Man), we have collated a list of top 10 umbrella companies! All of our top 10 are accredited by the Freelancer and Contractor Services Association (FCSA) or Professional Passport, and some have special offers at the moment.
